State RegulationsCO specificDifficulty 2/5
A Colorado producer writes coverage mostly on her own business and family. Under C.R.S. § 10-2-401(4), her license is deemed misused if, during any 12-month period, the aggregate controlled-business premiums:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
C.R.S. § 10-2-401(4) and (5) deem a license misused when, during any 12-month period, the aggregate premiums on controlled business exceed the aggregate premiums on all of the licensee's other business. The measure is a rolling comparison of controlled versus everything else, and exceeding the outside-business total is the statutory trigger that converts the license into an improper private convenience.
Why the other options are wrong
- A) Quarter-to-quarter growth is not the test; the statute measures aggregate premiums over a 12-month period.
- C) The comparison runs against the licensee's total other business, not against any single client's premiums.
- D) Falling below the other-business total is the compliant side of the line, not a misuse.
Memory hook
Controlled business may not outgrow the rest — 12 months, all other business.